Toyota Expects $5.5 Billion Hit From Iran War Fallout
Toyota said it expects an additional $5.5 billion in costs in fiscal 2026 because of fallout from the Iran war on global logistics and energy prices. The carmaker cut its profit guidance and signalled possible price changes for some US models. Its shares opened lower in Tokyo.
Toyota put the combined hit from higher fuel costs around the Strait of Hormuz, jumps in maritime insurance premiums and disruption in electronic-component supply chains at $5.5 billion. That equates to about 15% of the carmaker's net profit in the prior fiscal year.
Chief financial officer Yoichi Miyazaki said "limited and selective" price changes were possible on some Toyota and Lexus models in the United States, but production plans would be unchanged. The company reiterated its investment plans in hybrid and plug-in hybrid lines.
Analysts said the warning, coming days after Honda reported a historic operating loss, underscores how exposed the Japanese auto industry is to the Iran conflict. The yen weakened slightly against the dollar after the announcement.
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